PACE Loan Program
| Program Type | Loan |
|---|---|
| Technologies | Dependent on local government |
| Amount | Up to $12,500 for energy efficiency and up to $30,000 for renewable energy installations |
| Required Documentation | Must apply for eligibility with local government |
| Official Web Site | http://energy.maryland.gov/incentives/residential/PaceInitiative.asp |
The Property-Assessed Clean Energy (PACE) program offers homeowners a chance to finance their solar power project by taking out a loan from the state or local government. Under PACE, local governments can issue bonds to create a funding pool for PACE applicants. The bond maturity period may be no longer than 40 years under the law. Local governments control the bond’s interest rates, payment intervals, sales terms, and conditions for early bond redemptions, among other issues.
Local governments specify property owner eligibility for the program. They also specify which technologies or energy efficiency projects are eligible under the loan program..
Loans may be up to $30,000 for a renewable energy project. Lesser amounts are allowed for other energy-efficiency projects. The loan is repaid by implementing a property tax assessment on the applicant’s land. While this is a state-backed program, the programs are developed by local governments.
The loans themselves are repaid through the property tax assessment and repayment is limited to the repayment amount, the amount needed to recover the cost of issuing bonds, financing loans, and administering the program. The assessment stays with the property if the owner sells it before the assessment is paid off. Property owners also must prove their ability to repay the loan through a process similar to the mortgage loan approval process.
